USD/BRL may fall 334 - 499 pips

Our pivot point stands at 5.6060.

Our preference

Target 5.5343.

Alternative scenario

Above 5.6060, look for 5.6338 and 5.6503.

Comment

The RSI is below 50. The MACD is below its signal line and positive. The MACD must penetrate its zero line to expect further downside. Moreover, the price is below its 20 period moving average (5.5939) but above its 50 period moving average (5.5730). Finally, the USD/BRL is trading below its lower Bollinger band (standing at 5.5891).

Supports and resistances

5.6503 **

5.6338 *

5.6060 **

5.5951

5.5842 last

5.5508

5.5343 **

5.5178 *

5.5013 **

Number of asterisks represents the strength of support and resistance levels.